State Bank of India (SBI), India's largest public sector bank, has disclosed its fund utilization statement for the quarter ended September 30, 2025, in compliance with SEBI regulations. The bank reported no deviation or variation in the use of funds raised through its recent Qualified Institutional Placement (QIP).

QIP Details and Fund Utilization

SBI raised ₹25,000 crore through a QIP on July 21, 2025. The funds were earmarked for augmenting the bank's Tier-I capital base to meet future capital requirements and support growth plans. According to the statement, the bank has utilized these funds as per the stated objectives, with no deviations reported during the quarter.

Bond Issuance and Outstanding Instruments

The bank disclosed that no bond issuance occurred during the reporting period. However, SBI maintains a significant portfolio of outstanding domestic bond instruments totaling ₹1,58,557.00 crore. These instruments include various private placements such as Tier 2, Additional Tier 1 (AT1), and Long Term Bonds (LTB) securities.

Regulatory Compliance

The disclosure is in line with the Securities and Exchange Board of India's (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, which mandate listed entities to report any deviations in the use of funds raised from the public. SBI's statement confirms its adherence to regulatory norms and transparency in financial reporting.

Implications for Investors

The absence of any deviation in fund utilization suggests that SBI is executing its capital enhancement strategy as planned. This may provide reassurance to investors about the bank's financial management and its ability to meet regulatory capital requirements.

SBI's consistent approach to utilizing raised funds as per stated objectives underscores its commitment to maintaining a strong capital position, which is crucial for supporting its growth initiatives and meeting regulatory standards in the banking sector.

State Bank of India (SBI), India's largest lender, reported a 9.97% year-on-year increase in net profit for the second quarter of fiscal year 2026 (Q2FY26), driven by higher non-interest income and improved asset quality. The bank's Chairman, CS Setty, announced that SBI's total business crossed ₹100 trillion in Q2 FY26, marking a significant milestone.

Key Financial Highlights

• Net profit rose to ₹20,160.00 crores in Q2FY26, up from ₹18,331.00 crores in Q2FY25.
• Operating profit increased by 8.91% YoY to ₹31,904.00 crores.
• Net Interest Income (NII) grew by 3.28% YoY to ₹42,984.00 crores.
• Non-interest income surged by 30.44% YoY to ₹19,919.00 crores.

Asset Quality Improvement

SBI continued to strengthen its asset quality in Q2FY26:

• Gross Non-Performing Asset (GNPA) ratio improved to 1.73%, down 40 basis points YoY.
• Net NPA ratio decreased to 0.42%, an improvement of 11 basis points YoY.
• Provision Coverage Ratio (PCR) increased to 75.79%, up 13 basis points YoY.

Robust Business Growth

The bank reported strong growth across its business segments:

• Total advances crossed ₹44 trillion, registering a 12.73% YoY growth.
• Deposits grew by 9.27% YoY to ₹55.91 trillion.
• Domestic advances increased by 12.32% YoY, with retail personal loans growing by 14.09%.
• CASA (Current Account Savings Account) deposits grew by 8.06% YoY.

Segment-wise Performance

Corporate Credit Recovery

Chairman CS Setty highlighted the improvement in corporate credit growth:

• Corporate credit growth improved from nearly flat last quarter to 7.1% in Q2.
• Expectations are for corporate credit growth to reach double digits in the next two quarters.
• The recovery is expected to be led by mid-corporates and central PSUs, particularly in steel and cement sectors.
• Large corporates continue to use existing cash reserves.

Asset Quality and Margins

• SBI maintains strong asset quality with slippages expected around 0.50%.
• Credit costs are projected to be below 50 basis points for FY26.
• Net interest margins improved in Q2 due to better liability management and growth in low-cost CASA deposits.
• Exit NIMs for FY26 are projected to exceed 3%.

Capital Adequacy and Profitability

• Capital Adequacy Ratio stood at 14.62% as of September 30, 2025.
• Return on Assets (ROA) for H1FY26 was 1.15%.
• Return on Equity (ROE) for H1FY26 reached 20.21%.

Digital Banking Initiatives

SBI continued to strengthen its digital banking offerings:

• 64% of savings bank accounts were opened digitally through YONO in Q2FY26.
• The share of alternate channels in total transactions increased to 98.6% in H1FY26.

Additional Information

• The bank plans to spread expected credit loss provisions over five years.
• No immediate decision timeline has been set regarding SBI's 10% stake in Yes Bank.

CS Setty, Chairman of SBI, commented on the results, stating, "Our Q2FY26 performance reflects the bank's resilience and adaptability in a dynamic economic environment. The consistent improvement in asset quality, strong growth across business segments, and the milestone of crossing ₹100 trillion in total business underscore our strategic focus and operational efficiency."

As India's largest bank, SBI's performance serves as a barometer for the overall health of the country's banking sector. The bank's robust growth in advances and deposits, coupled with improved asset quality and recovering corporate credit, indicates a positive outlook for the Indian economy and financial services industry.